Moving To The Next Level

Headquartered in Miami, Florida, AGI is in expansion mode working hard to 8th Americas GHI Conference, where AGI was a platinum sponsor, Chief Commercial Officer Roger Larreur said 2024 has been a good year so far.

The first step was to rebrand companies acquired in 2022 under the four business lines of AGI Ground, AGI Cargo, AGI Post and AGI Secure. Through the four business lines, AGI has its strategy for the year with 38 startups, about once every four days, which Larreur called unprecedented for AGI.

ESG is the next step, which is challenging due to infrastructure, admitted Larreur, but AGI is focused on the aspects they can control. AGI wants more electric ground equipment but this is not practical at many airports, apart from New York LaGuardia Airport where Larreur says the airport carried out a good job preparing Terminal B for electrification. Passenger and ramp service employees have been given uniforms made from recycled materials, which they report look good and are comfortable to wear. In the cargo sector, sheets and wraps supplied by BioNatur Plastic saved the equivalent of almost 39 million 16oz plastic bottles in 2023.

Attracting and retaining talent is a priority and giving them a safe place to develop a career and reinforcing a safety culture is key for continuing AGI’s success story.

Cargo Growth

This year cargo volumes have been stronger than many people predicted. “The global carriers, our customer base have reacted and the capacity is there for them to fulfil that obligation I think that will carry on into 2025,” said Larreur.

As a ground handler, AGI has to manage its labour, capacity and find creative ways to fill empty capacity. He says AGI’s financial results are solid and the outlook is good.

The air cargo market is strong in general and e-commerce is booming with Larreur saying: “We need to be prepared for what our customers need.”

Moving Forward

Cargo is in AGI’s DNA with changes coming from the acquisition of Maestro International Cargo in 2021 and ATS and TAS in 2022. Acquiring Maestro increased cargo capacity and the acquisition of ATS and TAS meant AGI went from 0 to 60 stations on the passenge side, doubling AGI’s revenue in two years.

For a smooth integration, AGI firstly looked at the synergies then at areas such as the back office, HR and operations.

Larreur said: “The plan AGI made was that at the end of 2023, 90% of the integration was going to be done. The other 10% included final airport approvals for the name change. Painful in some areas? Yes, because there are different working and software platforms but for the most part, we stayed on plan.”

The combined company has over 12,000 team members at 62 airports, giving a greater focus on employees and making their lives safer and better at work. Having been involved in other integrations which took much longer, the speed and efficiency of the move reflects well on AGI, believes Larreur. For a company of its size, AGI was able to move quickly because it does not have multiple levels of bureaucracy.

The Right People

Labour shortages are a recurring theme and two years ago, Larreur says you could not get staff. After that, finding staff was not a problem but keeping them was another matter, which is still an issue. If they last six months, they are likely to stay until nine or 12 months, which the employer can control by making them safe at work, taking care of them and providing them with the right uniform and PPE.

“The company is large now so there is a lot of opportunity to move up and you can go as far as you want. We have multiple lines of business and large operations so it is a matter of what you want to do,” said Larreur.

Throughout the acquisitions, much of the middle management has stayed and when an employee arrives as a general manager, they are a shareholder of the company, which provides an incentive for staff so the company succeeds.

Planning For The Future

AGI is present at 62 stations in the USA and Canada with the plan to expand in strategic markets. It is public knowledge that AGI is looking at mergers and acquisitions in Europe and across Latin America. Deals need to fit with future plans, it needs to be part of the core business and AGI will ask itself whether the deal will create a better tomorrow.

Larreur said: “We will continue to expand the company where it makes sense for AGI and our shareholders.”

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